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Seece on 28 July 2011
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RolStoppable said:
Seece said:

Yeah, the 3DS cut was most certainly not in their foreseeable future when they launched in the west, I don't get the drastic cut tbh, I think $199, with a strong SW line up at xmas would have been better for the company ... they don't have to have huge sales from the get go, it's obviously very very early days for the 3DS.

But if they keep cutting DS and Wii forecast then yeah they can drop further, and despite the cut, 3DS still might not live up to their 16 mill forecast, I mean they have 15.3M left to go in 3 Q's ... and they still have a lot of stock out there (1 mill)

If Nintendo wants third party support (and apparently they do), then they need huge sales from the get go, because by now you should know that Nintendo pretty much has no room for error when it comes to third party relationships. $199 would still be expensive for a handheld, so I think it was the right move to go a step further. In the short term it may look like a bad decision, but this price cut will pay off in the long run.

Another important aspect of their forecasts is the yen to dollar exchange rate. Their new forecasts are based on an even weaker dollar, so that's part of the problem (something Nintendo can't do anything about, unfortunately). It's getting tough for Japanese companies on the whole; Microsoft has the benefit of being an American company that does most of its business in its home country.

Nintendo would be better off trying to make good relations with a few key 3rd party devs like THQ and nuturing them like Sony do their 2nd party devs.

Nintendo seems to be lying on its back for 3rd parties but I don't think 3rd parties will ever be loyal to Nintendo.